"Today, our structural cost is not aligned with the market realities nor the transformational priorities ahead. We must take significant actions now while our company and the economy are strong," it said.

The note disclosed that GM's global executives are eligible for the buyouts, in addition to North American salaried workers with 12 years' tenure. Global executives who take the offer would leave work in December, but get a full year's salary and benefits beyond their effective end date of March 1.

Employees considering retirement next year could take the offer, leave in December and get six months salary and benefits from their effective end date of Jan. 31.

The memo, obtained by the Free Press, said GM is also "looking at a variety of ways to reduce structural costs and improve vehicle profitability," beyond job cuts. That includes halting some renovation projects at two Michigan facilities.

GM is not alone in its plans to create a leaner company. Ford also is working to reduce its salaried workforce. Ford has not provided specifics on how many jobs will be cut or over what time frame in its $11-billion "fitness" plan.

No renovations

GM CEO Mary Barra on Wednesday sent an email to all 50,000 salaried GM employees in North America saying the automaker is offering voluntary buyouts to those with 12 years or more experience. GM has 17,700 salaried employees who meet that criteria, and "most global executives are eligible," the memo said.

Eligible employees have until Nov. 19 to make a decision. Those who opt to take the buyout have until the end of the year to work at GM, with severance effective Jan. 1.

The company has said it will consider layoffs if not enough workers take the buyout.

In the memo, GM said it is postponing the new studio building of the Design Center in Warren and halting renovations at its Global Propulsion Systems facility in Pontiac.

GM has spent three years and about $1 billion redesigning its offices in Detroit, Milford and Warren in its effort to hire and retain tech-savvy workers as it races to deploy a self-driving fleet of cars in a major urban market next year.

Remodeled open work space at the Vehicle Engineering Center in Warren.(Photo11: General Motors)

A person familiar with the plans to halt renovations in Warren and Pontiac said GM informed employees at both facilities last week about the work stoppage. The person would not provide specific cost savings gained by halting the projects, but said GM was about to make "significant additional investments to continue to the next phase" of both projects when it made the decision.

Market reality

GM has been cutting costs for several years. It said it would make $6.5 billion in reductions for 2018, but the new job cuts will not benefit GM until 2019. Through the third quarter, GM has hit $6.3 billion in cost efficiencies, CFO Dhivya Suryadevara said after GM released third-quarter earnings Wednesday.

GM's commodities costs in North America rose $300 million in the third quarter and the company expects rising commodity prices to impact its yearly results by $1.4 billion. In addition, the U.S. dollar’s strength is dinging GM's international business.

"We cannot afford to wait and see what happens in the industry, or with China, or in international trade or currency, to then react," the talking points memo says. "Cash is critical to being agile."

In June, GM issued a stern warning to the U.S. government that it would have to slash jobs if the Trump administration expanded U.S. tariffs on imported vehicles. That has not happened, though the administration says 25-percent tariffs remain under consideration. Tariffs remain in place on steel and aluminum.

Relentless focus

In GM's buyout memo, those eligible for the voluntary severance program are encouraged to consider that everyone who stays at GM must pitch in to help the company's finances, including: meeting "respective financial commitments," meeting production schedules with quality, seeking cost cuts and efficiencies in their areas and, in short, "relentlessly focus on improving cash flow."

The memo encourages managers to talk to eligible employees who express interest in a buyout to answer questions or let valued employees know their future roles in the company. Managers are forbidden to advise an employee on a decision, but it said, if there is an "important business reason to retain that person, the manager can require the employee to stay."

In the midst of all this, GM will continue to recruit talent for certain areas it is expanding, namely engineering and technology for its work on self-driving and electric cars.

"We always have the need to acquire new talent. We're trying to address ongoing efforts to reduce costs but continue our efforts in working on the future of mobility," said Pat Morrissey, said GM spokesman. "We'll continue to recruit in select areas of the business."